Stock Analysis

Update: Mobiis (KOSDAQ:250060) Stock Gained 61% In The Last Three Years

KOSDAQ:A250060
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One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowess, you can make superior returns. Just take a look at Mobiis Co., Ltd. (KOSDAQ:250060), which is up 61%, over three years, soundly beating the market return of 26% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 32% in the last year.

See our latest analysis for Mobiis

Given that Mobiis didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 3 years Mobiis saw its revenue grow at 65% per year. That's well above most pre-profit companies. The share price rise of 17% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at Mobiis. A window of opportunity may reveal itself with time, if the business can trend to profitability.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
KOSDAQ:A250060 Earnings and Revenue Growth February 20th 2021

Take a more thorough look at Mobiis' financial health with this free report on its balance sheet.

A Different Perspective

Over the last year Mobiis shareholders have received a TSR of 32%. While you don't go broke making a profit, this return was actually lower than the average market return of about 45%. On the bright side that gain is actually better than the average return of 17% over the last three years, implying that the company is doing better recently. If the share price is up as a result of improved business performance, then this kind of improvement may be sustained. It's always interesting to track share price performance over the longer term. But to understand Mobiis better, we need to consider many other factors. For instance, we've identified 1 warning sign for Mobiis that you should be aware of.

But note: Mobiis may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on KR exchanges.

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Valuation is complex, but we're helping make it simple.

Find out whether Mobiis is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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